Airbnb’s (ABNB) stock is down 5% after the home rental company issued inline financial results for this year’s first quarter and offered weak forward guidance.
The San Francisco-based company reported earnings per share (EPS) of $0.24 U.S., which matched the consensus forecast on Wall Street.
Revenue in the January through March period totaled $2.27 billion U.S., which was slightly ahead of the $2.26 billion U.S. estimated among analysts. Sales were up 6% from a year earlier.
In addition to the inline financial results, Airbnb provided underwhelming guidance for the year’s second quarter.
Management said they expect Q2 revenue of $2.99 billion U.S. to $3.05 billion U.S., or $3.02 billion U.S. in the middle of that range.
Wall Street had $3.04 billion U.S. of revenue penciled in for the company.
In its earnings release, Airbnb said they’re seeing “softer results” in the U.S. driven by broader economic uncertainties.
Notably, management said that they are seeing “softness” in travel from Canada to the U.S. as the neighbouring countries engage in a trade war.
At the same time, nights booked by Canadian guests visiting Mexico jumped 27% from a year ago in March of this year.
Airbnb said that its gross booking value, which measures host earnings, service fees, cleaning fees, and taxes, increased 7% year-over-year to $24.50 billion U.S., inline with estimates.
Nights and experiences booked rose 8% from a year ago and totaled 143.1 million. However, that fell short of the 143.4 million estimated among analysts on Wall Street.
Excluding North America, Airbnb said that nights and experiences grew 11% from a year ago.
Management said that they expect nights and experiences booked to “moderate” in the current second quarter of the year.
Prior to today (May 2), the stock of Airbnb had declined 6% this year to trade at $124.01 U.S. per share.